This morning we watched and there was nothing we could do as we did not expect the GBP to crash as it did.
Our strategies had opened GBPCAD trades after it dropped last week to a level that has not been seen since 1985 expecting it trace back up due to being oversold and market absorbing the news.
However the GBPCAD crashed from 1.47 to 1.40 within less than a minute. Have attached a pic below showing the quick decline. Due to this unexpected decline it meant the open trades were all closed along with the all the funds on strategies trading this pair.
This year has been a very hard year to trade and we made a number of changes to strategies to accommodate this by lowering the risk. However we could not have foreseen such a large drop to occur based on the news from last week of this magnitude.
As the moment we are trying to close all trades on all strategies. Further details below:
Wave Rock – GBP impacted and no longer trading
Mollymook – GBP impacted and no longer trading
Kangaroo – GBP impacted and no longer trading
Grampians – GBP impacted and no longer trading
All Tassie – GBP impacted and no longer trading
Quobba – all trades closed and not impacted
Coral Bay – one pair trading and waiting to close AUDCHF. No new pairs will open and will stop trading.
Red Centre – all trades closed and not impacted. Will not be turned back on.
Kosciuszko – has GBP trades and large draw down so monitoring. No new pairs will open.
Karijini – has one pair trading. All other pairs turned off.
The risk was within our parameters this morning so no action was taken. te level GBPCAD drop to is a level never seen before i.e. since the 1970’s when pair first traded.
All strategies will be turned off to allow investors to withdraw their funds from strategies that have no trades on them. Once trades close on strategies with pairs open we will also turn off these strategies.
At the time of writing this GBPCAD has recovered to 1.44100 and our strategies would have been in a large draw down but would have managed this.
I apologies for this occurring and we looked at the data over the weekend and it never occurred to us this level of a drop could occur or this fast.
If you have any queries, please do not hesitate to come back to me.
See the day range above and it dropped from 1.47 to 1.40.
